Asian markets traded mixed on Friday as investors remained on edge over reports of a possible extension of Donald Trump’s July 9 tariff deadline.
The market sentiment remained in a wait-and-watch mode ahead of the United States releasing its Consumption Expenditures (PCE) Price Index data, which can shape the future moves of the US Federal Reserve.
The benchmark indices saw a healthy rally in Japan and India, while investors in Hong Kong, South Korea, and China treaded with caution.
The market response was also shaped by the reports that the US and China have finalized a trade framework aimed at facilitating rare earth exports and loosening certain tech restrictions.
A spokesperson for the ministry said China will review and approve export applications for items under its export control rules, while the US has agreed to roll back several existing restrictions on Beijing.
Japan’s Nikkei 225 hits 6-month high
Japan’s Nikkei ended Friday at a six-month high, lifted by strong gains in tech stocks following a solid performance on Wall Street overnight.
The Nikkei climbed 1.43% to close at 40,150.79, its highest since December 27. It also logged a 4.6% weekly gain, marking its best week since late September 2024.
Meanwhile, the broader Topix index added 1.28% to finish at 2,840.54, rising 2.5% over the week.
Hong Kong’s Hang Seng index slipped 0.2% to finish at 24,284 on Friday, extending its losses for a second straight session despite a brief uptick earlier in the day.
Investor sentiment turned cautious after China’s industrial output dropped 9.1% year-on-year in May, pulling year-to-date figures down by 1.1% amid growing concerns over deflation.
KOSPI dips amid foreign investors’ pullout
South Korea’s KOSPI index declined for a second straight session, closing around the 3,050 mark.
The drop was largely driven by heavy selling from foreign investors, often seen as key market movers.
The index is still maintaining the crucial 3,000 above level as at the closing bell, the KOSPI closed at 3,055.94, 0.77% lower.
Chinese stocks dipped slightly on Friday but still notched their best weekly performance in nearly two months, boosted by gains in financials and improved sentiment following a ceasefire between Israel and Iran.
The CSI 300 index slipped 0.6%, while the Shanghai Composite fell 0.7%.
Sensex, Nifty rally to 2025 high
The momentum remained strong in the Indian stock markets as the benchmark indices saw a sharp climb this week and are trading around their 2025 high.
Since plunging to a one-month low of 24,473 on June 13, the Nifty 50 has rebounded sharply, adding 1,076 points to touch 25,637.8, its highest level so far in 2025.
The Sensex has followed a similar trajectory, rallying 3,505 points from its June 13 low to hit a new 2025 high of 84,058.9 on Friday.
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